RAM Prices To Cut Down By 25% In 2019 Due To Oversupply

RAM prices have gone up drastically in 2018 and don’t seem to come down anytime soon, at least not in 2018. However, according to industry sources, DRAM prices will cut down drastically in 2019 due to oversupply.

The report comes from DigiTimes that claims that RAM prices will cut down by 25% in 2019 due to an oversupply of the RAM in the market.

According to the site, industry sources have revealed that DRAM prices will cut down in 2019 due to Micron Technology ramping up its capacity and China-based Fujian Jin Hua to kick off its mass production of DRAM.

The recent capacity ramps by Micron Technology and the planned kick-off of commercial production by China-based Fujian Jin Hua Integrated Circuit and Innotron Memory (previously known as Hefei ChangXin) could lead to oversupply for the memory in 2019

According to the report, both Samsung and SK Hynix will have to overhaul their business strategy in the RAM market which has been booming for last 2-3 years and this boom will end in 2019 with the oversupply of RAM in the market which will result in 25% cut in RAM Prices.

Although Samsung and SK Hynix both stated, at their latest investors conferences, respectively, that they will continue to ramp up capacities for memory chips, the aggressive moves by rival companies have made the two companies hesitate, said the report.

Samsung has seen its share in the DRAM market continue to dive after hitting a high of 50.2% in the third quarter of 2016 as rivals including Micron have jacked up their revenues and profits.

However, this competition and cut down of RAM prices will translate into some good things for the consumers as RAM is quite expensive right now. Even in the part of the world I live in has seen the RAM Prices increase significantly.

Speaking of Samsung, Samsung is also in the business of the manufacturing VRAM for GPUs such as HBM2.

However, the demand for the HBM2 has increased quite a lot and Samsung has noted that even if it doubles the HBM2 production they won’t meet the demand.

Also, the demand for HBM2 isn’t the only factor that has resulted in high-prices as there are a lot of benefits associated with the HBM2 memory.

What do you think of RAM prices to cut down by 25% in 2019 due to oversupply? Let us know your thoughts in the comments below.

Source: DigiTimes